If the CEO Owns a Yacht, Should You Sell the Stock?

[CityFarmer]

IMO, the key point is the prudence with company finance by CEO, rather than his/her personal spending habit.

As long the company finance been managed with prudence, i will rather ignore the CEO personal spending habit

Totally agree on this . however i would draw the line if he/she is a heavy gambler at the casino.we want conservative CEOs and not big risk takers running the firm.

Totally agree with your view. A gambler is a definitely "NO"

[RBM]

Jacmar & City Farmer,

If I had invested in Kerry Packer's media business when he had started off...... I would be an appreciably richer individual than I am today. Kerry, rest his soul, had a habit of betting US$ 1 Million on a single hand of blackjack or a roll of the dice in the Las Vegas MGM Casino. By all accounts he was a very shrewd businessman.

I would hazard a guess that more than one of Singapore's most respected and successful business people are "heavy" gamblers ............ but only in the casino.

IMO, the key point is the prudence with company finance by CEO, rather than his/her personal spending habit.

As long the company finance been managed with prudence, i will rather ignore the CEO personal spending habit

Totally agree on this . however i would draw the line if he/she is a heavy gambler at the casino.we want conservative CEOs and not big risk takers running the firm.

Totally agree with your view. A gambler is a definitely "NO"

[CityFarmer]

Jacmar & City Farmer,

If I had invested in Kerry Packer's media business when he had started off...... I would be an appreciably richer individual than I am today. Kerry, rest his soul, had a habit of betting US$ 1 Million on a single hand of blackjack or a roll of the dice in the Las Vegas MGM Casino. By all accounts he was a very shrewd businessman.

I would hazard a guess that more than one of Singapore's most respected and successful business people are "heavy" gamblers ............ but only in the casino.

For a shrewd businessman, he should know the winning odd to gamble in Casino. If a shrewd businessman is also a regular "VIP customer" of Casino, there are only few reasons

- He is not as shrewd as we think.
- He is shrewd, and know the odd, but it is un-controllable desire to bet
- He like the high risk high gain biz, gambling is one of the "biz" he going after

I will avoid his company for any of the reasons above.

Maybe i am still young and limited exposure? (compare with RMB of course ) I did not come across a sustainable successful businessman who is also a regular "customer" to Casino, both in my working and personal life.

[Jacmar]

Jacmar & City Farmer,

If I had invested in Kerry Packer's media business when he had started off...... I would be an appreciably richer individual than I am today. Kerry, rest his soul, had a habit of betting US$ 1 Million on a single hand of blackjack or a roll of the dice in the Las Vegas MGM Casino. By all accounts he was a very shrewd businessman.

I would hazard a guess that more than one of Singapore's most respected and successful business people are "heavy" gamblers ............ but only in the casino.

I have many screens that helps me decide what to invest and this is not one of them. i am very sure in my screens i will weed out some multi-baggers too but my screens help me to sleep soundly at night too!!